Analysis of Geographic Areas
KLA Corp. operates in 3 regions: Asia; North America; and Europe and Israel.
Area Asset Turnover
KLA Corp., asset turnover by geographic area
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Asia | 45.58 | 44.47 | 43.87 | 56.79 | 66.13 | 54.37 |
| North America | 1.55 | 1.87 | 1.70 | 1.71 | 2.00 | 2.36 |
| Europe and Israel | 2.25 | 4.09 | 4.97 | 3.47 | 2.72 | 2.39 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
The annual geographic area asset turnover ratios exhibit distinct trends over the six-year period analyzed. Each region shows variability in its capacity to generate revenue relative to assets, reflecting different market dynamics and operational efficiencies.
- Asia
- The asset turnover ratio for Asia starts at a relatively high level of 54.37 in 2019 and rises to a peak of 66.13 in 2020. However, after this peak, a downward trend emerges, with the ratio declining sharply to 43.87 in 2022. From 2022 onwards, the ratio stabilizes somewhat, slightly increasing to 44.47 in 2023 and 45.58 in 2024. This pattern may indicate initial strong asset utilization followed by a significant reduction, possibly due to increased asset base or slower revenue growth, before some modest recovery in recent years.
- North America
- The ratio for North America shows a gradual decline from 2.36 in 2019 to 1.70 by 2022, reflecting decreasing efficiency in asset usage during this period. In 2023, there is a minor improvement to 1.87, followed by another decrease to 1.55 in 2024. This overall downward trend suggests challenges in maintaining revenue generation relative to assets, with fluctuations indicating possible operational or market-related issues affecting turnover.
- Europe and Israel
- This region displays a generally increasing trend from 2.39 in 2019 to a high of 4.97 in 2022, which represents notable improvement in asset turnover efficiency. This peak is followed by a decline to 4.09 in 2023 and a more pronounced drop to 2.25 in 2024. The initial growth indicates enhanced asset productivity, potentially from successful market expansion or operational improvements, whereas the subsequent decreases may suggest emerging constraints or market fluctuations affecting revenue generation relative to assets.
Overall, the data reveal that Asia consistently maintains a substantially higher asset turnover ratio than the other regions, albeit with decreased performance after 2020. North America experiences a slow but steady decline with minor fluctuations, while Europe and Israel show marked improvement until 2022, followed by a significant reversal. These patterns highlight varying regional dynamics and the need for targeted strategies to optimize asset utilization across different markets.
Area Asset Turnover: Asia
KLA Corp.; Asia; area asset turnover calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 8,201,193) | 8,558,997) | 7,647,176) | 5,756,338) | 4,830,391) | 3,666,528) |
| Land, property and equipment, net | 179,940) | 192,450) | 174,314) | 101,370) | 73,039) | 67,435) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 45.58 | 44.47 | 43.87 | 56.79 | 66.13 | 54.37 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Area asset turnover = Revenues ÷ Land, property and equipment, net
= 8,201,193 ÷ 179,940 = 45.58
- Revenues
- The revenues in the Asia geographic area experienced a consistent upward trend from June 2019 through June 2023, increasing from approximately $3.67 billion to $8.56 billion. This represents more than a twofold increase over four years, indicating strong revenue growth during this period. However, in the most recent year ending June 30, 2024, revenues declined slightly to about $8.20 billion, suggesting a potential stabilization or minor contraction after several years of substantial growth.
- Land, Property and Equipment, Net
- The net value of land, property, and equipment showed a marked increase from around $67.4 million in June 2019 to $192.5 million by June 2023, nearly tripling over this timeframe. This indicates considerable investment in fixed assets over these years. In the final year ending June 2024, a decline to approximately $179.9 million was recorded, which might reflect asset disposals, depreciation, or a slowdown in capital expenditures.
- Area Asset Turnover Ratio
- The area asset turnover ratio demonstrates a declining trend from 54.37 in June 2019 to 43.87 in June 2022, indicating that the efficiency in generating revenues from assets diminished during these years. Thereafter, a marginal upward movement occurred, with the ratio increasing to 44.47 in June 2023 and further to 45.58 in June 2024. Nevertheless, overall asset utilization remains below the levels observed at the beginning of the period, suggesting that asset growth has outpaced revenue growth in recent years.
Area Asset Turnover: North America
KLA Corp.; North America; area asset turnover calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 1,070,791) | 1,254,956) | 928,043) | 765,974) | 657,550) | 596,452) |
| Land, property and equipment, net | 689,937) | 672,561) | 547,454) | 447,359) | 329,558) | 253,255) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 1.55 | 1.87 | 1.70 | 1.71 | 2.00 | 2.36 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Area asset turnover = Revenues ÷ Land, property and equipment, net
= 1,070,791 ÷ 689,937 = 1.55
- Revenues
- The revenue in the North America geographic area shows an overall upward trend from June 30, 2019 to June 30, 2023, increasing from approximately 596 million USD to about 1.255 billion USD. This represents a significant growth over the five-year period. However, there is a noticeable decline in revenue in the following year ending June 30, 2024, where revenues decreased to approximately 1.071 billion USD. This indicates a potential slowdown or contraction in this market segment after a period of consistent growth.
- Land, Property, and Equipment, Net
- The net value of land, property, and equipment also displays a steady increase over the period analyzed, rising from 253 million USD in mid-2019 to nearly 690 million USD by mid-2024. This represents substantial investment or capital accumulation in fixed assets within the geographic area. Growth appears consistent, though the rate of increase diminishes somewhat between 2023 and 2024, suggesting a possible plateau in capital expenditure or asset acquisition.
- Area Asset Turnover
- The area asset turnover ratio, which measures revenue generated per unit of land, property, and equipment, shows a declining trend from 2.36 in 2019 to 1.55 in 2024. After a sharp drop from 2.36 to 1.7 between 2019 and 2022, the ratio momentarily improves to 1.87 in 2023, before decreasing again in 2024. This decline suggests that despite increased investment in assets, revenue generation efficiency relative to these assets has fallen over the examined period, indicating potential challenges in asset utilization or changes in operational productivity.
Area Asset Turnover: Europe and Israel
KLA Corp.; Europe and Israel; area asset turnover calculation
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 540,263) | 682,103) | 636,664) | 396,422) | 318,483) | 305,924) |
| Land, property and equipment, net | 240,091) | 166,830) | 128,161) | 114,298) | 117,227) | 128,109) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 2.25 | 4.09 | 4.97 | 3.47 | 2.72 | 2.39 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
1 2024 Calculation
Area asset turnover = Revenues ÷ Land, property and equipment, net
= 540,263 ÷ 240,091 = 2.25
- Revenues
- Revenues for the Europe and Israel geographic area demonstrated an overall increasing trend from 2019 to 2023, rising from $305.9 million to $682.1 million. This reflects a significant growth phase, particularly notable between 2020 and 2022, where revenues jumped from $318.5 million to $636.7 million. However, there is a noticeable decline in 2024, with revenues decreasing to $540.3 million. This decline may warrant further investigation to understand underlying causes.
- Land, Property, and Equipment, Net
- The net value of land, property, and equipment exhibited a general upward trend over the six-year span. Starting at $128.1 million in 2019, the figure dipped slightly in 2020 and 2021 to $117.2 million and $114.3 million respectively, before recovering and then significantly increasing in the last two years to reach $240.1 million by 2024. This suggests ongoing investment in fixed assets, with a particularly strong capital expenditure phase in the most recent years.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures the efficiency of using assets to generate revenues, showed varying dynamics. It increased from 2.39 in 2019 to a peak of 4.97 in 2022, indicating improved asset utilization and operational efficiency in that period. However, after 2022, the ratio dropped notably to 4.09 in 2023 and further to 2.25 in 2024. This decline corresponds with the increase in land, property, and equipment and the decrease in revenues in 2024, suggesting that asset growth may have outpaced revenue generation in the latest year, leading to reduced asset turnover efficiency.
- Overall Insights
- The data reveals a period of growth and increasing efficiency in the Europe and Israel segment up to 2022. Investments in property and equipment have expanded significantly recently, but the efficiency in asset usage and revenue levels have decreased in 2024. This may indicate a strategic shift involving heavier capital investment that has not yet fully translated into proportional revenue growth, highlighting a potential area of focus for performance improvement.
Revenues
KLA Corp., revenues by geographic area
US$ in thousands
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Asia | 8,201,193) | 8,558,997) | 7,647,176) | 5,756,338) | 4,830,391) | 3,666,528) |
| North America | 1,070,791) | 1,254,956) | 928,043) | 765,974) | 657,550) | 596,452) |
| Europe and Israel | 540,263) | 682,103) | 636,664) | 396,422) | 318,483) | 305,924) |
| Total | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | 5,806,424) | 4,568,904) |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
- Asia Revenue Trend
- The revenue generated from the Asia region shows a consistent upward trend from June 30, 2019, to June 30, 2023. It increased from approximately 3.67 billion USD in 2019 to 8.56 billion USD in 2023, more than doubling over this period. However, in the most recent year ending June 30, 2024, there is a slight decline to about 8.20 billion USD, indicating a minor downturn after several years of growth.
- North America Revenue Trend
- Revenues from North America also display steady growth from 2019 through 2023, rising from roughly 596 million USD to approximately 1.25 billion USD. This represents a significant increase of over 100% during the period. The figure then declines to around 1.07 billion USD in 2024, reflecting a decrease after consistent growth in prior years.
- Europe and Israel Revenue Trend
- Revenues from Europe and Israel exhibit a less consistent pattern. Initially, there is modest growth from roughly 306 million USD in 2019 to about 682 million USD in 2023. Notably, the revenue experiences an acceleration between 2021 and 2022, jumping from approximately 396 million USD to 637 million USD. However, in 2024, the revenue declines substantially to about 540 million USD, indicating a reversal after the prior surge.
- Total Revenue Trend
- Total revenues reflect the aggregate pattern of the regional revenues, showing strong growth from about 4.57 billion USD in 2019 to nearly 10.50 billion USD in 2023. This reflects an overall increase of approximately 130% over five years. The total revenue then decreases to roughly 9.81 billion USD in 2024, marking the first decline after several years of steady expansion.
- Summary of Insights
- The data reveals that the Asia region remains the largest revenue contributor, followed by North America and then Europe and Israel. All regions demonstrated strong revenue growth trends up to 2023, contributing to the company's overall revenue expansion. However, the latest period shows a decline across all regions, suggesting a potential market adjustment or other external factors impacting sales. This recent downturn warrants further analysis to determine underlying causes and to assess whether it represents a short-term fluctuation or the beginning of a longer-term trend.
Land, property and equipment, net
KLA Corp., land, property and equipment, net by geographic area
US$ in thousands
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|
| Asia | 179,940) | 192,450) | 174,314) | 101,370) | 73,039) | 67,435) |
| North America | 689,937) | 672,561) | 547,454) | 447,359) | 329,558) | 253,255) |
| Europe and Israel | 240,091) | 166,830) | 128,161) | 114,298) | 117,227) | 128,109) |
| Total | 1,109,968) | 1,031,841) | 849,929) | 663,027) | 519,824) | 448,799) |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
The analysis of land, property, and equipment, net, across the geographic areas over the annual periods reveals distinct growth patterns and regional disparities.
- Asia
- The net value of land, property, and equipment in Asia shows an overall increasing trend from 2019 to 2023, rising from approximately $67.4 million to $192.5 million. However, a slight decline is observed in 2024, decreasing to about $179.9 million. This indicates robust growth in earlier years, followed by a modest contraction in the most recent year.
- North America
- North America exhibits consistent and significant growth throughout the period. Starting at $253.3 million in 2019, the net value increases steadily each year, reaching nearly $690 million by 2024. The growth rate remains relatively strong, with no declines, suggesting ongoing investments or acquisitions in this region.
- Europe and Israel
- The values for Europe and Israel fluctuate more noticeably. From $128.1 million in 2019, there is a decline in 2020 and 2021, bottoming out at around $114.3 million, followed by a recovery and substantial increase in 2023 and 2024, culminating at $240.1 million. This represents a more volatile but ultimately doubling net asset base over the six-year span.
- Total
- The total net value across all regions consistently rises each year from $448.8 million in 2019 to $1.11 billion in 2024. The growth is steady and reflects strong capital investments or asset accumulation overall. The total increase of nearly 2.5 times underlines a broad expansion in property, plant, and equipment holdings globally, supported by increases in all three geographic segments.
In summary, North America leads the growth trajectory with continuous expansion, Asia grows substantially but experiences a recent decrease, and Europe and Israel undergo fluctuations before a strong rebound. The aggregate effect is a marked increase in net land, property, and equipment assets internationally over the observed timeframe.